Visa was created by bank Of America in 1958. Mastercard was created by a conglomerate of American regional banks in 1966. The CC industry has essentially insurmountable barriers to entry due to brand recognition, global dominance and extremely complex payment processing facilities It is highly profitable because of annual fees, high interest rates and large average debts.
BNPL is really nothing more than a credit warehousing facility, a logo and and a phone app. There are no real barriers to entry (new entrants are arriving on an almost weekly basis somewhere in the world.). Providers are regional - not truly global. Nobody is (or is ever likely to be) dominant. Nobody is making a profit because of the ongoing marketing costs, risky client profile, low transaction value, lack of account fees and high percentage of inactive customers. Because nobody is dominant there is no need for merchants to be loyal to any brand. The entire industry is basically a gimmick.
APT Price at posting:
$86.01 Sentiment: Sell Disclosure: Not Held
